Contract Law

Monetary consideration

5 Which of the following is not essential to a valid contract? Competent parties Monetary consideration Offer and acceptance A lawful object

Two only

A 'voidable' contract is unenforceable. valid until action is taken to make it void.

Any of the above

A contract can be voided if it was signed under a threat of force. duress. undue influence. Any of the above

Any of the above reasons

A contract could be rescinded due to mistake. misrepresentation. fraud. any of the above reasons.

an implied Contract

A contract created by actions rather than oral or written words is called

Void

A contract created to pursue an illegal objective is

2 only

A contract is generally void if it was entered into with a minor. it requires an illegal act for performance.

Notarization

A contract must have certain specific elements in order for it to be valid. Which of the following is not a necessary component to form a valid contract? Acceptance Notarization Consideration Offer

1 and 3

A contract that has no force or effect in law is void. voidable. unenforceable.

2 only

A lease made with a lessor who is under legal age of majority, (who is a minor) is voidable by lessee. voidable by lessor.

Both 1 and 2

A person must have the legal capacity to enter into a contract. Which of the following statements concerning legal capacity is true? A minor's contract is valid unless he disaffirms the contract. An illiterate person can be bound by a written contract.

is within his rights to withdraw his offer.

A principal broker obtained a signed offer and an earnest money check from a qualified prospect and his spouse. Before the principal broker could present the offer to the seller, the buyer called to say he was being transferred out of town and wanted to withdraw his offer. In this case, the buyer could be successfully sued for specific performance. must forfeit his entire earnest money deposit. must forfeit a portion of his earnest money deposit. is within his rights to withdraw his offer.

Both 1 and 2

A real estate property manager can be guilty of misrepresentation by direct acts or statements. acts of omission, such as failure to disclose vital information.

enforceable, but is subject to rescission by one of the parties to the contract.

A voidable contract is void because one party to the contract has an unfair advantage over the other party. enforceable, but is subject to rescission by one of the parties to the contract. invalid and the contract cannot be enforced by either party. illegal because all of the elements to create the contract are not present.

Neither 1 or 2

A voidable contract is a contract which is legally insufficient and not recognized by law. not binding on either party.

None of the above

A voluntary agreement between legally competent parties to do or refrain from doing some legal act is called a waiver. lis pendens. attachment. None of the above

recordation

All of the following are essential elements to a lawfully enforceable contract, EXCEPT consideration and competency. mutual assent. recordation. legality of object.

contract

An agreement between competent parties upon legal consideration creating legally enforceable duties and obligations' is a definition of

contract that is to be performed.

An executory contract is always a

Statute of Frauds

An oral lease for two years is not enforceable due to the

voidable at the option of Albert.

Coercion and duress were applied upon Albert in a contract with Roger. The contract is

May be an exchange of promises

Consideration in a contract may be an exchange of promises. is more than ten percent of the purchase price. is not essential. all of the above.

2 and 3

Essential elements of a contract include consideration in the form of money. competent parties. mutual agreement.

a consideration clause expressed in monetary terms.

Every valid contract must meet all of the following requirements EXCEPT legally competent parties to the agreement. a consideration clause expressed in monetary terms. an offer and acceptance mutually agreed upon. a legitimate purpose.

Neither

In Oregon, a married girl under age 18 is considered to be a minor, and any contract she enters into is voidable. can disaffirm any contract entered into, until a reasonable time after reaching the age of majority.

1 only

In Oregon, which of the following must be in writing to be enforceable? A property management agreement A lease for less than a year

The contract must not be for an illegal purpose or against public policy.

It is said that a valid contract must have legality of object. Which of the following best describes 'legality of object'? An agreement between competent parties that is legally enforceable. All parties are of legal age and agree upon the legal consideration to be paid. Either party has the legal right to cancel the contract, provided legal notice is given. The contract must not be for an illegal purpose or against public policy.

1 and 2

The Oregon Statute of Frauds requires that all legally enforceable property management agreements be in writing. leases for a year or more be in writing

legality of object.

The requirement that a contract must not be for an illegal purpose or against public policy is referred to as:

1 and 2

The term 'consideration' as applied to contracts means careful thought has been given to the agreement. something which is given in exchange for something from the other party.

1, 2 and 3

The term 'consideration,' when used in the context of contract law, could mean something of value. mutual promises. a forbearance to act.

to voluntarily give up or surrender a right.

The term 'waiver' as used in a legal contract is best defined as to voluntarily give up or surrender a right. the mutual exchange of privileges. estoppel. detrimental justification.

1 only

To comply with the Statute of Frauds, all real estate contracts must be written. acknowledged. recorded.

Both 1 and 2

To create a valid contract, a property management agreement must be in writing. have a definite expiration date

competent parties promising to do or not to do certain things for legal consideration, provided the agreement is with a lawful object in mind.

To have a valid contract, a series of elements are needed. They are:

Void

Two parties signed a contract which both knew was for an illegal purpose. Under these circumstances the contract would be voidable. void. valid. valid as long as both parties agreed not to divulge the purpose of the contract to anyone.

duress

Using threats to force a person to enter into a contract involuntarily is known as

executed

When the parties to a contract have fully performed the terms, the contract may properly be described as

1, 2 and 3

Which of the following are necessary to prove that a misrepresentation constituted a fraud? That the person making the misrepresentation knew that the statement was false and made the statement with the intent to deceive the other party. That the statement was regarding a material fact. That the party to whom the misrepresentation was made acted upon it to his/her detriment. That the statement was in writing.

2 and 3

Which of the following is necessary to establish misrepresentation? The assertion was in writing. The assertion was material to the formation of the contract. The assertion was false.

Performance

Which of the following is not a necessary element in the formation of a contract? Offer Acceptance Consideration Performance

An agreement between competent parties and based upon legal consideration that creates legally enforceable duties and obligations.

Which of the following is the best description of a contract? An agreement between competent parties, giving each the right to cancel the contract provided legal notice is given. An executed document in which all essential elements have been fulfilled. An agreement whereby all parties to the agreement have contractual ability. An agreement between competent parties and based upon legal consideration that creates legally enforceable duties and obligations.

The Statute of Frauds

Which of the following statutes or act creates the need for a contract to lease for a year or more to be in writing? The Recording Act The Statute of Descent The Statute of Frauds The Statute of Limitations

2 only

Which one of the following statements concerning the assignment of contracts is correct? Property management agreements are assignable without the client's consent. Unless prohibited in the contract, a lease may be assigned by the lessee.

Both 1 and 2

With respect to the material facts concerning a property, a licensee in a real estate transaction may be guilty of misrepresentation by commission. omission.